Amazon is in the middle of an AI arms race, and Wall Street is watching closely. The company's core businesses—AWS and retail—are humming along nicely, but the massive spending required to stay competitive in artificial intelligence has analysts both excited and cautious. Here's what the experts are saying.

Doug Clinton: Strong Revenue, Rising AI Costs

Intelligent Alpha founder and CEO Doug Clinton told CNBC on Tuesday that Amazon's core businesses—AWS and retail—are delivering solid top-line growth, reflecting healthy underlying demand. However, he noted that earnings could face near-term pressure as the company ramps up spending to stay competitive in AI.

Clinton highlighted Amazon's growing investment in AI infrastructure, including Trainium chips and new partnerships, as key cost drivers. He said the company is likely to increase spending on engineering and R&D to defend AWS's leadership position, even if that weighs on margins in the near term. Overall, he views Amazon as well-positioned in AI but requiring more aggressive investment to sustain its edge.

Tom Forte: AWS Momentum And Broader Resilience

Maxim Group's Tom Forte told CNBC on Thursday that Amazon's AWS is showing improving momentum, with sequential acceleration in year-over-year growth signaling strengthening demand. He emphasized that investors remain focused on capital spending, noting that an update to the company's $200 billion CapEx outlook remains a key missing piece.

Forte added that Amazon's non-AWS business has held up well, supported by resilient consumer demand and its marketplace model, which helps maintain competitiveness on pricing. He also said Amazon's AI-related investments, including stakes in Anthropic and OpenAI, could create value over time. However, he cautioned that reliance on those firms as customers introduces trade-offs and is not yet a primary investment driver.

Gene Munster: Agentic Commerce And Early AI Cycle

Deepwater's Gene Munster told CNBC on Thursday that Amazon's recent stock strength reflects growing confidence in its ability to sustain revenue growth, supported by clearer positioning around agentic commerce. He noted that Amazon is giving investors better visibility into how it plans to monetize AI-driven search and shopping experiences.

Munster also emphasized that the broader AI cycle remains in its early stages, with rising capital expenditure expectations across Big Tech signaling continued investment. He said Amazon's outlook reinforces the idea that AI adoption still has significant runway as companies scale infrastructure and develop new use cases.

Sarat Sethi: Strong Fundamentals And Long-Term Appeal

DCLA Managing Partner Sarat Sethi told CNBC on Wednesday that Amazon's fundamentals remain robust, driven by multiple growth engines across its business. He described the company as firing on all cylinders, with diversified operations contributing to overall performance.

Sethi highlighted Amazon's strong cash flow generation and its ability to invest heavily while maintaining returns on invested capital. He said these attributes make Amazon an attractive long-term holding, particularly as it continues to execute across multiple growth areas and invest in future opportunities.

Amazon Price Action

Amazon (AMZN) shares were down 0.39% at $262.01 at the time of publication on Thursday. The stock is trading near its 52-week high of $265.91.